Alamogordo denies having late audits

City officials say they have no lagging audits and are attempting to get an explanation from the state after funding for one of its capital outlay projects has been delayed.

Alamogordo is one of several New Mexico municipalities, counties and other governmental entities to have capital projects held up by the state for problems with audits.

The city's effluent water project was one of six Otero County capital outlay projects -- worth over $11 million -- to get stalled by an executive order from Gov. Susana Martinez earlier in the year.

The effluent project is worth about $243,000 in state money.

The city is also set to receive funding for improvements to its senior citizen center, but that project funding has not been delayed.

"We're not sure what the state means at this point because we have not received any official correspondence from them regarding all the media releases that have been put out saying some capital outlay projects are being held up because of audit findings," Assistant City Manager Matt McNeile said. "As far as we know, and as far as the state auditor -- on their website -- we had an unqualified audit, which means everything was fine and they accepted our audit."

According to the New Mexico State Auditor's office, Alamogordo has an unqualified audit for 2012.

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McNeile said the city is in the process of reaching out to the New Mexico Department of Finance and Administration to resolve the issue.

The DFA Capital Outlay Bureau could not be immediately reached for comment Thursday.

District 3 Commissioner Robert Rentschler said the situation is perplexing because Alamogordo has an "impeccable" record with regard to its audits.

He said it is odd the state is only holding up one of the capital outlay projects, but not all of them and that a state audit report shows Alamogordo with three projects when it only has two.

Rentschler said a state report related to the capital projects appears to contain inaccuracies, but the city has so far not been able to find out why its money is being held up.

"We are unable, so far, to really reach the people who can give us the answers," Rentschler said.

Rentschler said the project is probably being held up by the state Environmental Department, but at this time, the city doesn't know the exact reason.

According to the DFA, the state Environmental Department is the administrating agency for the effluent water project.

The Environmental Department could not be immediately reached for comment Thursday.

Rentschler said Alamogordo will be able to hold off on the money for several months, but added that smaller communities such as Cloudcroft and Timberon -- which also capital outlay money being held up -- will suffer should they not receive their money in a timely fashion.

"Theses are things these people need right now. Their situations are serious up there," he said. "They have hurt people with what they have done here."